Exercises
Mix and Match
Match each definition on the left with its mathematical expression on the right. Refer to the following regression equation in this exercise:
where Y is the annual salary of an employee (in thousands of dollars) and X denotes the years of experience. D is coded as 1 for college graduates and is coded as 0 for those graduating high school but not college.
| 1. Intercept for high school graduate | (a) β1 |
| 2. Intercept for college graduate | (b) β3 |
| 3. Has units $thousand/year, high school graduate | (c) β0 + β2 |
| 4. Has units $thousand/year, college graduate | (d) β0 + β110 |
| 5. Difference in slopes | (e) X × D |
| 6. Difference in intercepts | (f) ∊ |
| 7. Interaction | (g) β1 + β3 |
| 8. Equal variances | (h) β0 + |
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